External costs of electricity generation in 27 European countries from 2010 - 2030: Pathway towards sustainability or business as usual?

Abstract

Electricity generation in Europe is undergoing fundamental change. The aim is to increase sustainability by reducing emissions. Each country has a different electricity mix, and there is no established method for measuring environmental impacts of electricity production with a single indicator, in a uniform manner and with country-specific data. To address this gap, we have developed a model that measures costs of 19 environmental externalities (usually types of emissions). Using country-specific technologies, electricity mixes and external cost rates, we assess and analyse the development of external costs of generating electricity in 27 European countries between 2010 and 2030. Our simulation results show that despite the initiated transformation of the energy systems in many EU countries, external costs per kWh are decreasing in only eight of these countries. This fact underlines the need for a drastic change in national energy strategies. Particularly striking are the developments of the energy mixes in six countries. Overall, the results show that more far-reaching policy measures are needed in order to significantly reduce the external costs of the energy sector in Europe.